Senator Elizabeth Warren’s plea to the US’s Treasury Secretary has forced Michael Novogratz to comment that there is definite urgency amongst the politicians to obtain crypto education instead of pulling their hair and scratching each other’s heads. He advised that Bitcoin has gone mainstream because institutions developed their confidence in it. The politicians and bureaucrats need to be schooled that Bitcoin isn’t bad.
A day ago, Senator Elizabeth Warren had written a letter to Janet Yellen urging the Treasury Secretary to immediately launch crypto regulation. Warren claimed that the matter requires urgent attention as Bitcoin has already victimized many in the US and worldwide. However, the plea of Warren to Yellen was not appreciated at all within the Bitcoin community. There was an immediate backlash against Warren’s advice to Yellen. Some critics commented that Warren has definitely been ill-advised or that she is anti-Bitcoin.
However, there was one criticism that was fired from Michael Novogratz, who is Galaxy Digital’s, Chief Executive Officer. While CNBC was interviewing him, he was questioned about Bitcoin’s near future and what was the driving force behind its latest rebound. Novogratz quickly responded to the question and said that of course, Bitcoin has obtained institutions’ confidence. He said that though the value had dropped immensely yet institutions continued to purchase Bitcoins because they were aware of its future.
He then quoted an example of a leading crypto trading exchange, FTX. The company had lately completed its fundraising campaign wherein it has managed to receive US$ 900 Million. All this amount was pooled in by approximately 60 investors and 90% of them happened to be institutions, he quoted. The institutional investors who invested in FTX included Sequoia Capital, Daniel Loeb’s Third Point, Softbank Group, Alan Howard, and Paul Tudor Jones. He denied the argument that it was because of Amazon’s embracing of crypto that had led to Bitcoin’s rebound @ US$ 40,000.
Novogratz opined that the latest rebound is because of some high-profile institutional investors. He said that those who participated in the fundraising campaign of FTX were the driving force behind Bitcoin’s rebound. In the words of Novogratz, FTX’s investors are the most formidable global institutions, capable to turn the market tides in their favor. Their participation and confidence in Bitcoin, have sent a loud and clear message that the crypto market is here to stay.
He was further asked to make any comment with regard to crypto regulation. In response, he suggested that he thinks there is a lack of crypto education amongst politicians, especially lawmakers. Although he did not mention Warren directly, he was referring to Warren. He suggested that someone would need to ensure that lawmakers are properly educated with regard to Bitcoin and the overall crypto concept. He thinks that with learning and education, politicians can get rid of pulling their hair and scratching each other’s heads.
Before taking a leave from the interview, he suggested that there never was/is or ever will be a need to regulate crypto.